Jordan Times
Thursday, March 10, 2005
Jordan is a conceptual
model for FTA deals — Novelli
By P. V. Vivekanand
ABU DHABI — The Free Trade Agreement (FTA) signed with Jordan is a conceptual
model for similar deals with other Arab countries, a senior US official said
Wednesday.
Noting that Jordan was the first Arab country to sign an FTA with the United
States in 2000, Catherine A. Novelli, assistant trade representative for Europe,
Middle East and North Africa, said the Kingdom is continuing to benefit in terms
of trade and exports to the US.
Speaking to reporters on the fringes of the first round of negotiations with the
United Arab Emirates (UAE) government on an FTA, Novelli indicated that since
the year 2000, Jordan's two-way trade with the United States has grown from $301
million (in 1999) to $1.9 billion in 2004.
Over 40,000 jobs have been created by trade with the United States, she said
noting that foreign direct investment in Jordan increased from $627 million in
1995 to $2.4 billion in 2002.
Jordan has benefited not only from access to the US market, but also from the
high-standard intellectual property regime that it committed to under the FTA,
Novelli remarked.
On the controversial issue of FTAs with the Gulf Cooperation Council (GCC)
countries, Novelli said the US favours a joint FTA with the GCC countries after
bilateral accords were signed.
She said the FTA under negotiations with the UAE, will boost inter-GCC
cooperation.
The comment reflects on calls from top officials from the region for a
collective FTA with the US rather than bilateral agreements. However, Novelli
said there need not be a conflict over the issue.
Novelli, who is in the UAE for the first round of FTA negotiations with the
government, told reporters that the US hopes to sign similar agreements with all
the GCC member states, including Saudi Arabia.
However, Saudi Arabia has to become a member of the World Trade Organisation (WTO)
before the US could start discussing a bilateral FTA with the kingdom, she said.
She added that as part of a regionwide FTA including Saudi Arabia, the US
agreements will be built on WTO obligations, and hence it is necessary for a
country to be a member of the WTO.
“That is why we are working so closely with Saudi Arabia which has to be a
member of the WTO. This won't in any way hinder GCC integration, it would rather
lead to faster integration,” she said.
“What we have set out to do through the Middle East Free Trade Area concept is
to work with countries at their levels and work with them to move forward as
they decide to proceed,” she added.
“We do not see this as threatening to the GCC in any way,” the official
remarked. “We are looking at how we can build a high level of market openness
with our partners and we don't want to have agreements at a low level.”
Novelli noted that the US has already concluded an FTA with Bahrain, has
launched FTA negotiations with the UAE and will be starting first round of
negotiations with Oman next week. Serious discussions are also under way with
Kuwait and Qatar, she added.
Novelli indicated that the FTA talks with the UAE followed one year of
discussions based on a “shared vision” of open markets. “The US and UAE vision
is so matching that we did not want to wait for very long to enter into an
agreement,” said Novelli.
She stressed that the US was keen to work closely with countries that want to
become members of the WTO in order to expedite their accession.
She concluded that the US is committed to making changes for the benefit of all
parties concerned in such agreements.